Pass the Pennsylvania Real Estate Commission Real Estate Licensing RePA_Sales_S Questions and answers with CertsForce

Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

Under49 Pa. Code § 35.305 (Business Name on Advertisements), a real estate licensee must disclose the fair market value of any prizes, gifts, or incentives offered as part of a sales promotion.

This ensures transparency and prevents misleading advertisements that might influence a consumer’s decision based on exaggerated prize values.

Failure to disclose the fair market value could result in penalties or disciplinary action from the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option B (Where the Prize Was Manufactured):There is no requirement to disclose where a prize was made.

Option C (How Many Others Have Won):The law does not require disclosure of the number of previous winners.

Option D (Names of Stores for Exchange):There is no requirement to provide names of stores that would honor or exchange the prize.

Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.

A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.

The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.

Why the other answers are incorrect:

Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.

Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.

Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.

Under49 Pa. Code § 35.331 (Written Agreements Generally),all parties must receive a copy of a signed offer within 1 business day of acceptance.

This ensures that buyers and sellers have full documentation of the transaction.

Delaying delivery of signed contracts can lead to disputes and potential violations of real estate regulations.

Why the other answers are incorrect:

Option A (24 Hours):While fast delivery is preferred, thelaw specifically states “1 business day.”

Option C (At Closing):Buyers must receive a copywell before closing.

Option D (Reasonably Practicable Time):This istoo vagueand does not meet thespecific 1-business-day requirement.

Both thePennsylvania Real Estate Commission (PREC)and thePennsylvania Human Relations Commission (PHRC)haveauthority to investigate illegal discriminationin real estate transactions.

The Pennsylvania Human Relations Commission (PHRC)is responsible for enforcingthe Pennsylvania Human Relations Act (PHRA), which prohibits discrimination in housing based onrace, color, religion, ancestry, age, sex, national origin, disability, and familial status.

The Pennsylvania Real Estate Commission (PREC)investigates complaints againstlicensed real estate professionalswho violate fair housing laws, including violations of theReal Estate Licensing and Registration Act (RELRA).

Why the other answers are incorrect:

Option A (Pennsylvania State Legislature and PREC):The Legislaturemakes lawsbutdoes not enforcethem or conduct investigations.

Option B (PREC and Better Business Bureau):TheBetter Business Bureau (BBB) is a private organizationand doesnot have legal enforcement authority.

Option C (PHRC and Legislature):The Legislature doesnot investigate complaints, but the PHRC does.